FTC Expected to Begin Wide Antitrust Investigation of Google
The Wall Street Journal has reported today that the Federal Trade Commission is preparing to serve Google with subpoenas, kicking off a formal antitrust investigation. They will be attempting to determine if Google has abused it market position to suppress competition. While this is not the first FTC investigation of Google, it’s likely setting off serious alarm bells at Mountain View due to its scope.
Google has previously been investigated by the FTC for its numerous acquisitions, but this new probe is said to be directly related to Google’s core business of search and advertising. Other players in the market have been complaining that Google’s natural search algorithm is not so natural, and is actually designed to drive people only to its services.
Further, many worry that Google’s dominant position in advertising gives them too much control over a businesses success or failure. The FTC was likely spurred to action in the wake of Google’s increasing movement into markets like mobile, travel, and set top boxes. Analysts believe the FTC will have a tough time proving unfair practices, though. It is not illegal to have a monopoly, just to abuse it. Do you think Google is engaged in unfair business practices?
Comments
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avenger48
June 25, 2011 at 10:33pm
What about the trust of monopolistic companies working together to unilaterally punish end users for the accusation of file sharing? Where are you there, FTC?!
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Danthrax66
June 23, 2011 at 9:55pm
This is kind of bullshit. It is their site and they are using their algorithm. The FTC needs to back the fuck off. They developed an algorithm that shows listings on their site of search results that they want you to see. There is no law that says they have to provide you with results to the entire internet. And besides the FTC should be more worried about net neutrality instead of this dumb shit because some sites aren't getting linked to as much because their content is subpar.
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yu119995
June 23, 2011 at 8:24pm
"Further, many worry that Google’s dominant position in advertising gives them too much control over a businesses success or failure."
I've witnessed this firsthand. Our small internet marketing company has been hit hard by Google's algo changes including the latest Panda updates (2.0-2.2). We've seen revenues drop by about 80% as a result.
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bloodgain
June 23, 2011 at 3:08pm
Baloney. I don't even think it's fair to say Google has a monopoly. Are they ubiquitous? Sure, but they are not immune to competition and take no actions to block it. They only even buy companies for their technology, not just because they are competition. They aren't bullying anyone, it's just difficult to challenge such solid services.
It's not unfair for the FTC to investiage them, though, as long as they don't hinder their free-market access. That's what the FTC is supposed to do, and it's a side-effect of big success.
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